CT2015-027 Increase 2 Approval Letter

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DNR COLORADO 1313 Sherman Street John Hickenlooper, Governor Denver, CO 80203 CO Colorado Water Mike King, DNR Executive Director Conservation Board P (303)866-3441 Department of Natural Resources F(303)866-4474 James Eklund, CWCB Director TO: Colorado Water Conservation Board Members FROM: Jonathan Hernandez, P.E., Project Manager Kirk Russell, P.E., Finance Section Chief N,,(.2 DATE: July 15-16, 2015 Board Meeting (Updated July 17, 2015) AGENDA ITEM: 12a - Change to Existing Loans Pisgah Reservoir and Ditch Company- Mount Pisgah Dam/Wrights Reservoir Outlet Works Rehabilitation Project Introduction The Pisgah Reservoir and Ditch Company (Company) received approval of a $161,345 CWCB loan (C150341) and a matching $161,345 WSRA grant (C150505) to finance the Mount Pisgah Dam/Wrights Reservoir Outlet Works Rehabilitation Project (Project) at the September 2012 CWCB Board Meeting. The purpose of the Project is to make improvements to the Pisgah Dam outlet works, per the State Engineer's Office direction. The loan and grant together funded approximately 90%of the Project's 2012 estimated cost of $362,690. The Company returned to CWCB to seek additional funds based on final engineering and were approved for a total loan of $543,655 at the November 2014 CWCB Board Meeting; the WSRA grant remained unchanged. As a result of the bids received in May 2015, the Company is requesting an additional increase to its loan, but is not seeking an increase to its WSRA grant. See attached Project Data Sheet for a location map and Project summary. Staff Recommendation (Board Approved Staff Recommendation on July 15, 2015) Staff recommends the Board approve a loan increase of $623,170 ($617,000 for Project costs and $6,170 for the 1% Loan Service Fee) for a total loan not to exceed $1,172,261 ($1,160,655 for Project cost and $11,606 for the 1% Loan Service Fee) to the Pisgah Reservoir and Ditch Company for engineering and construction costs related to the Mount Pisgah Dam/Wrights Reservoir Outlet Works Rehabilitation Project from the Construction Fund. The loan terms shall remain at 30 years at a blended interest rate of 1.75% per annum. Security for the loan shall be a pledge of assessment revenues backed by an assessment covenant and the Wrights Reservoir (aka Mount Pisgah Reservoir) and Mount Pisgah Dam including all associated appurtenances, rights-of-ways, easements, and the underlying parcel, which is in compliance with CWCB Financial Policy#5. (Interstate Compact Compliance •Watershed Protection • Flood Planning a Mitigation • Stream t Lake Protection Water Project Loans Et Grants•Water Modelin g • Conservation i Drou g ht Plannin g •Water Supply Plannin g * of !!y�� /876 1° *